Monday, June 03, 2013

Kellogg settles lawsuit

Consumers and regulators alike are demanding more honesty from companies, and the latest sign of that is the announcement that Kellogg has agreed to pay $4 million to settle a class-action lawsuit over health claims it made for Mini-Wheats. At the time it was stated that the cereal would increase children's attentiveness, among other things. This story actually has its beginnings four years ago when the company settled with the Federal Trade Commission over the same issue. And, Kellogg is not first company to get their hand slapped for inappropriate health claims. For example, General Mills got in trouble with the FDA for its cholesterol claims for Cheerios.

In an ever increasingly competitive cereal market companies are looking for an edge. In recent years it has been over the health benefits of its cereals. The danger is that it is easy to step over the line with claims that are hyped or exaggerated to draw attention.

It was much more fun when cereal companies attracted customers through creativity with cereal recipes, boxes, free toys and special offers!

By the way, customers can submit a claim for refund at

(Source: Huffington Post)

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